Introduction about PNB

Punjab National Bank with 4497 offices and the largest nationalised bank is
serving its 3.5 crore customers with the following wide variety of banking services:

 Corporate banking
 Personal banking
 Industrial finance
 Agricultural finance
 Financing of trade
 International banking

Punjab National Bank has been ranked 38th amongst top 500 companies by The
Economic Times. PNB has earned 9th position among top 50 trusted brands in
India.

Punjab National Bank India maintains relationship with more than 200 leading
international banks world wide. PNB India has Rupee Drawing Arrangements with
15 exchange companies in UAE and 1 in Singapore.

PNB Online

Punjab National Bank of India is also a member of SWIFT and more than 150
PNB Branches are connected with terminals in Mumbai. It promotes "Any Time,
Any Where Banking".

PNB offers Internet Banking services for both to the Corporates and Individuals. It
provides 24 hours, 365 days banking from the PC of the user. A user can operate
anytime and from anywher its accounts. The following are some of the services
available online:

 Access to account
 Complete details of transactions and statement of account
 Online information of deposits, loans overdraft account etc.
 Online Payment Facility for railway reservation through IRCTC Payment
Gateway Project
 Online Utility Bill Payment Services which allows Internet Banking account
holders to pay their telephone, mobile, electricity, insurance and other bills
anytime from anywhere from their desktop.
Punjab National Bank Card user can buy goods and enable services from 45,000
merchant outlet in India and can withdraw cash from over 4500 ATMs with its
own 450 ATMs.

Punjab National Bank Branches

Punjab National Bank has its Branches in all the 7 metropolitan and cosmopolitan
cities in Inadi namely New Delhi, Mumbai, Calcutta, Chennai, Bangalore,
Hyderabad and Ahmedabad. It even has its branches in small town in both urban as
well as rural areas.

PNB is always focussing on expanding abroad and till date has identified some
emerging economies abroad. They are in few of these places.

 Almaty
 Kazakhktan
 Shanghai
 China
 London
 Kabul
 Afghanistan

INFORMATION SYSTEMS IN PNB

Punjab National Bank (PNB) has taken many IT initiatives. Bank has

computerized 100% of its branches and has implemented 100%

Centralized Banking Solution(CBS) comprising approx.5000

branches, with Data Centre at New Delhi and Disaster Recovery

Site(DRS).The Data Centre and DRS are connected through a

Enterprise Wide Network. The modes of connectivity to the

branches/offices are a combination of VSATS, leased lines, ISDN

Lines, PSTN and other forms of connectivity, which may emerge in

the near future. Remote Access connectivity will also be provided to

Identified offices, branches or customers. All the offices and HO

Divisions are computerized. Besides these, there are interfaces with

applications and networks used by different institutions like MTNL,

Customs, Reserve Bank of India and other institutions wherever

required.

Other Alternate Delivery Channels of services like Internet Banking,

ATM, POS etc are also offered by the Bank to customers. An ATM

Switch has been installed at New Delhi in the Data Centre and a DR

setup is under operation and all the ATMs across the country are

connected to the Switch through various modes of communication

(both through private network and banks’ Enterprise Wide Network).

Internet Banking Infrastructure is also located and integrated with the

Enterprise Wide Network in a secured manner. Payment gateway

infrastructure shall be established shortly. Bank also has Exchange

server based corporate email setup.

Applications from multiple vendors for different internal requirements

of Bank are also in use. Some of these applications are accessed

through Enterprise Wide Network by different Branch Offices and also

available to access through Internet and through Dial-up connection

such as:4 | P a g e

1. e-circulars.

2. Preventive Monitoring System.

3. Human Resource & Management System.

4. e-procurement

5. SFMS/ RTGS etc.

Bank is also in the process of implementing Data Ware House Project

to provide better access to information, to foster better and more

informed decision-making, besides providing statutory reporting and

MIS for the bank. This will also be located at Delhi.

The Operating Systems used in Different applications include

different flavors of Unix (like Solaris, AIX, SCO etc.), Windows NT,

Windows 2000 Advance Server, Novell Netware, Tandem, DOS etc.

Applications, which use messaging, include SWIFT, SFMS (RBI

Infinet), Cash Management Services, Electronic Funds Transfer, and

other RBI Projects etc. The Mail Server is on MS Exchange Server

2003. The Data bases include Oracle, MS SQL, Access, FOXPRO,

Sybase etc.

The Enterprise Wide Network is maintained by Bank’s Network

Integrator and the security measures are already enforced at various

levels (Application Security, Network Security, Database Security, OS

Security, Access Controls, Physical Security etc.). All these security

measures are in place in congruence with the Bank’s Information

Security Policy, Business Continuity Plan, Disaster Recovery

&various other regulatory compliances.

The data Center, DRS and NOC have been certified as ISO 27001

compliant.
MODULARITY AND EXTENSIONS:

The principle of distributed intelligence and the type of

communication used should allow a high degree of modularity. It

should be possible to add or remove card readers from the

installation easily and at any time. The capacity of the installation

must not be limited to a set number of readers or people.

The proposed solution must be part of a complete integrated system,

guaranteeing the up gradation, evolution and extensibility of the

system.

When submitting the tender, the bidder must provide proof of the

existence of the following integrated systems:8 | P a g e

► The integration of working time management: time-clocks to

enable the management of hours worked, absences, overtime and

staff scheduling, using the same communication network, the same

cards, the same database and the same management computer.

► The integration of "intranet" modules to handle leave

requests and outside missions. This module will also enable

managers to view time management data and information about the

daily management of operational teams via a web browser.

► The integration of "virtual time-clock" modules, enabling users

to clock in or out remotely via the web, for use in future as and when

necessary.

► The integration of a system for managing identity cards with

photos, providing for images to be captured and stored digitally and

cards to be printed. This system must use the same cards and the

same database, and must run on the same management computer.

► The integration of a visitor management system, optimised to

allow visitor cards to be entered and produced very quickly. At the

user's choice, this system will be able to produce visual identity cards

(paper) or access control cards validated directly by the visitor

management software running on the access control system. It will

enable the history of visits to be managed and reports to be

produced. The visitor management module will also allow for visitor

acceptance criteria (blacklist, security certification etc.). A "selfentry" solution for

visitors must also be available.

► The inclusion of configurable staff records with at least 40

fields, making it possible to adjust the administrative database to suit

the site's specific needs.

► The integration of web modules enabling attendance,

movements of staff via readers and door statuses to be viewed, doors

to be controlled remotely and temporary badges to be allocated via

CENTRALISED MANAGEMENT COMPUTER:

The central computer will have sufficient capacity to process 10,000

access cards and control at least 500 entry/exit points or alarms

spread across the site(s). The main computer (Server) contains in its
relational database all the information needed for the system to

operate. The system architecture enables distributed use over the

network via workstations (Clients). The number of clients must be

unlimited.

The server will be responsible for communication with all the local

controllers through the IT network on the basis of the TCP/IP

protocol. The server will send the controllers the instructions

necessary for them to function independently. Data sent between the

server and the controllers must be encrypted.

Wireless or telephone (switched or GPRS) communication solutions

must also be available.

THE WORKSTATIONS:

The workstations are linked to the server by a computer network

(Ethernet TCP/IP). Depending on the operator's level of authorisation,

they enable read or read/write access to the database and the

centralised applications. They also give access to the operating

status of the various elements making up the access control

installation. They should also be suitable for use as workstations for

other standard office computing tasks

THE INTELLIGENT CONTROLLERS:

The intelligent controllers must be located in protected zones. They

need a 220 V AC power supply and are connected to the IT network

using the TCP/IP protocol. Other means of communication will be

available if no network exists (modem, GPRS, WiFi).

Each intelligent controller must have a connection to the fire

detection system in the form of a potential-free relay.

The access control system should be compatible to the present

hand geometry systems installed

The intelligent controllers will be either "autonomous" or "multiple

terminal unit" in type, depending on the geographical distribution of

the access control points.

The central server will download the essential data for taking access

decisions and the schedules for local actions (opening doors,

commands, alarm management etc.) into each local controller.

Controllers in "On-Line" mode immediately send all events to the

server. Controllers in "Off-Line" mode synchronise automatically with

the centralised database each time they connect.

Each controller has its own database containing authorised cards, the

readers and/or zones for which they are authorised and their validity

dates. It also has its own alarm log. All events are time stamped by

an on-board real-time clock synchronised regularly with the server

clock. Controllers operating autonomously (RTC modem etc.)

synchronise each time they connect. Local functions involving time

criteria (time segments for instructions/commands, calendar, access

profiles) will use the same clock. The calendar of special days will

also be stored locally.

If the connection with the server is interrupted, events are stored in

the controller until the link is resumed (storage of at least 25,000 23 | P a g e

events, extensible to 1,00,000 per controller). Access permissions

are stored locally, as are automatic reactions to access/intrusion.

The supplier must explain how he can guarantee that no event

data can ever be lost in the controllers.

The controllers may nevertheless be placed in FiFo (First In First Out)

mode if requested by the client.

If the link is broken, the operation of the system should not be

affected, and the response time of the readers should remain virtually

instantaneous.

If the 220-volt power supply is interrupted, battery back-up

LOCAL ACCESS UNITS ( CONTROLLER ):

This door module is the device that provides the interface between

the door(s) and the "multiple terminal unit"-type controller. The local

unit is equipped with inputs and outputs for connecting it to readers

and all the elements necessary for access control (door contacts, exit

push-buttons, door opener relays), plus other devices using its

supplementary inputs and outputs (emergency exits, local alarm

output etc.)

The local units have:

1. four fully addressable inputs/two outputs (extensible to eight

inputs/eight outputs);

2. two supplementary outputs (option);

3. four supplementary addressable inputs/outputs (option);

4. two inputs for identification devices and keyboards;

5. Power outputs for 12 V DC 350 mA door openers;

6. Anti-sabotage tamper switches (option)

7. a case that is easy to install or has DIN fixings

The local access units are linked together by an RS485 field bus and

power supply. The bus length must be extensible to 1 km. The power

supply will be distributed accordingly

Techno
logy
OPPURTUNITIES FOR INFORMATION SYSTEM has
IN PNB enable
d PNB
to be in
Public sector banks are trying to compete with private banks to offer
a
better services, and automation is their best bet. Gaurav Patra profiles
positio
Punjab National Bank, a 107-year-old bank, which has taken major steps
n to
towards technology upgradation
handle
Set up more than a century ago in 1895, Punjab National Bank (PNB) much
today is the second largest public sector bank in the country (after State more
Bank of India), with a business of Rs 1,00,000 crore. The bank has an busines
extensive employee base of 56,000 people in 4,228 branches across the s with
country, and has a customer base of 30 million. PNB’s net profit, for the a lesser
numbe
r of
people,
says K
s
bajwa
half-year ending in September 2002, stands at Rs 411 crore, which further
showcases its strength in the banking segment.

Besides making a mark in terms of revenues, the bank— among the few
technology-savvy PSUs—is now setting examples for other banks, especially
PSUs. Recognising this effort, the Institute for Development and Research in
Banking Technology (IDRBT), a division of the Reserve Bank of India (RBI),
presented PNB with the award for excellence in banking technology. This is quite
an achievement considering that the technology transformation started only two-
and-a-half years back at PNB. In March 2000, the bank had only 36 percent of its
businesses covered on computers, as against 84 percent today.

According to K S Bajwa, deputy general manager of the IT division at PNB, there

are four reasons why PNB opted for IT as its business tool. “Firstly, technology
has the capacity to reduce the transaction cost to a great extent, plus it saves time.
Secondly, it limits data entry time as replication, report generation etc, can be done
automatically. Thirdly, it offers immense scope for improvement on the customer
relationship front, as computers help deliver quick and enhanced value-added
services to customers like smart cards, ATMs, Internet banking, etc. And lastly it
also helps keep track of the business,” explains Bajwa.

Banking applications
The first and the foremost requirement for this technology transformation was a
centralised core banking system. PNB tied up with Infosys in the first phase. Once
it had acquired the software package, PNB’s 150 strong in-house team customised
it, as per the bank’s requirements. In April this year, PNB implemented this
centralised core banking solution at its eight branches—six in New Delhi and two
in Mumbai. Today, the number of locations has increased to 12. As far as the
centralised core banking system is concerned, PNB has a data centre at the
corporate office and all these 12 centres have an extension to that data. “This
system enables an individual having an account in any of our branches to conduct
transactions/operate the account from any of these 12 branches,” says Bajwa.

By next year, PNB aims to connect 200 branches in 40-50 cities across the country
and aims to increase this number to 1,500 in three years. “This system will also
enable us to have a centralised database to implement CRM and data warehousing
solutions in future,” he adds. Once this system is in place, the banking major will
be able to introduce a number of value-added services like ATMs, tele-banking,
SMS banking, mobile banking and Internet banking, remote access facility through
its website, etc. (PNB already has a license from RBI to launch Internet banking.)
The system will also enable customers to avail of the Straight to Processing (STP)
facility. The biggest advantage of STP is that if a person with an account in Delhi
deposits a cheque in Chennai, his account in Delhi gets updated the same day. “We
have successfully implemented this solution and this is making both our
customers’ and our life very convenient,” comments Bajwa. PNB’s team has also
customised this package to suit the typical requirements of a public sector bank.
“As PNB handles huge number of government accounts—public provident fund,
deposit of income tax, deposit of different duties and treasury payments, we had to
customise it and also built a module for government businesses into this package,”
says Bajwa. The 107-year-old bank, with around 7,000 locker holders, has also
built a locker module in this package to benefit customers.

The bank also has a depository set-up (to store dematerialised share certificates) at
its corporate office in New Delhi and another in Mumbai. Customers owning
shares and bonds can deposit them at these depositories after which the hard copies
are destroyed. The bank, on the other hand, keeps a digital copy of all these
documents. “Thus, one does not have to bother about the loss of paper, or a
signature that does not match and so on. Customers can now instruct the bank at
any point of time to transfer these securities,” informs Bajwa.

Another very interesting development with PNB is its contract with Indian
Railways. It is putting up an ATM machine at the New Delhi station’s reservation
office, which is going to be a interface between the Railways’ server and the
bank’s server. Once this is functional, customers can collect their tickets from the
ATM machine and the payment can be made using credit or debit cards (PNB will
launch Mastercard International debit cards next January), or by a paper card
(which the bank is launching shortly). Once this is successful and the interface is
done, the bank plans to enable all their ATMs across the country on this platform.

Electronic Data Interchange (EDI) is another technology initiative that the bank
has taken up recently. It has entered into an agreement with the Customs
department wherein the Customs’ server is connected with the bank’s corporate
office server, which is further connected to several branches of PNB and also to
importers. Thus, whatever duties are required to be deposited with the Customs
department can be debited from the importer’s (read customer’s) account
automatically. The pilot project for this has already been carried out and the bank
plans to introduce this service soon.

The PSU has also introduced a bilingual software known as Bank-mate. “With the
help of this software one can generate reports in Hindi and also can get his/her
passbook in Hindi,” informs Bajwa. This is already in operation at around 25
branches and PNB is also getting orders for this package from other banks.

PNB’s IT set-up
As any other financial institution PNB also has a number of applications running
on its network. The bank has plans to standardise all its platforms on UNIX
operating system and RDBMS on Oracle. As far as the hardware platform is
concerned, PNB has Sun Microsystems’ Web servers at the data centre. For the
Base 24 switch, they have gone in for Compaq Servers. Apart from this, they are
also using RISC Servers, IBM and Xeon servers. PNB has around 500 servers
across the country and around 13,000-15,000 PCs placed in different offices across
the country. At some locations, the bank is still using DOS machines to run some
of their ATMs.

 Networking hardware: The bank is using Cisco products (routers,

switches) at the data centre for networking hardware. It has around 100
routers and 8-10 switches across the country, mainly from Cisco. Initially
TechNet was the network integrator for the bank. But, as the bank’s
requirements increased, it shifted to HCL Comnet to design and implement
its network as HCL Comnet was better equipped to handle the load, says
Bajwa.
 Storage: Considering the size of its operations, PNB needs to have an
effective storage system, but it doesn’t have a centralised storage system yet.
The data for all its 2,700 branches is still stored on PCs. But the bank is in
the process of storing all its data on CD-ROMS by March 2003. It is also in
the process of implementing a data warehousing solution called Ladders.
Through this solution, all the data from the branches will be sent to the
corporate office through regional and zonal offices respectively. For this
solution, PNB has opted for a Xeon server and UNIX operating system.
National Institute of Bank Management (NIBM) has developed this solution
for PNB.
 Security: The bank already appointed IDRBT as its security consultant.
IDRBT is in the process of creating documentation on the security set-up of
the bank. PNB has hired Network Systems to implement the selected
solution and is considering solutions like Firewall, Biometrics, PKI and is
tendering for the same.
 WAN: Today, the bank has a network of around 400 ATMs installed and
this number is expected to grow very soon. All these ATMs are connected
through a Base-24 switch from FSS. Recently, the bank has also decided to
 share its ATM network with other banks. So PNB’s customers will be able
to use other banks’ ATMs and vice versa.

This will help the bank to increase the reach of its customers. For wide area
connectivity of all its ATM machines, PNB has taken 160 VSATs from Comsat
Max. Though hired, the VSATs are used exclusively by PNB.

PNB also has another network on INFINET, a financial network set up by RBI
under which more than 800 VSATs are installed all over the country. PNB is using
60 VSATs as part of INFINET.

Benefits
One of the biggest benefits that the bank has derived out of IT has been the
tremendous saving on recruitment front—the bank has not recruited more staff
even while the business and work pressures have gone up five times.
Consequently, PNB’s profitability has also increased. To train users the bank has
set up 14 computer training labs across the country.

Future
As part of its future roadmap the bank has lined up some interesting projects. This
includes the launching of its debit cards. For its CRM initiatives the bank plans to
set up a customer relationship centre, in addition to a virtual Internet branch. It is
also thinking of setting up a videoconferencing system at 30 locations. It has
already placed an order with Siemens Information Systems for the same.

To further strengthen its position in the industry, PNB has plans to set up PNB IIT
(PNB Institute of Information Technology) in Lucknow. Apart from providing
technical training to bankers, this autonomous body will also research and develop
technical products for the banking industry.

unjab National Bank used a two-pronged strategy to IT-enable itself and support present
and future business needs. And along the way it picked up valuable information
and experience. by Soutiman Das Gupta & Rahul Neel Mani

Punjab National Bank's (PNB's) come a long way since March 2000, when IT
systems were deployed only at 500-odd branches, and was very disparate. Only 35
percent of the bank's business was computerized and a number of small software
packages ran on standalone PCs.
Now in 2003, PNB has 101 branches on a WAN, deployed a core banking
infrastructure, and runs 175 networked ATMs. It has also deployed a reliable
security infrastructure that helps it conduct transactions within its branches without
worry. The journey doesn't end here, but along the way the bank's picked up
valuable knowledge and experience.

The beginning

In March 2000, the penetration and use of IT was not very high at PNB. The bank
used seven different software, which ran on 13 different flavors of Unix, on
standalone PCs. The 500-odd branches were not networked and only 35 percent of
the bank's business was computerized. The overall expertise in IT among users was
low.

The Central Vigilance Commission (CVC) issued a directive to the bank to

computerize at least 70 percent of its business by December 2000. This prompted
the bank to work out a strategy to tackle the daunting task in the short period of
time.

Analysis

A SWOT analysis was performed and it produced the following results:

Strengths:

 The bank personnel would be able to readily embrace the use of IT.
 An existing pool of qualified knowledge-based personnel would contribute
largely to the IT initiatives.
 The financial position of the bank was very sound. There would not be any
constraint of funds to facilitate IT initiatives.
 The bank wasn't bound to too much legacy systems and equipment.

Weaknesses:

 Different Unix OS flavors in different branches.

 Different standalone financial applications on PCs at different branches.
 Lack of interoperability due to disparity in systems.
 Limited expertise on the software packages currently deployed. This
increased dependence on vendors.
 Systems audits were pending.
  Most branches did not have a proper LAN in place.
 There was almost no WAN connectivity.

The bank realized that there was a lot of opportunity to create a stable IT
infrastructure which would fuel future growth. But there was also the need to
honor the CVC deadline to computerize at least 70 percent of its business within
December 2000. The bank now has around 4,000 branches.

Action

PNB hired a consultant and devised a two-pronged plan of action. The plan
comprised:

1. A short term goal - To meet the CVC deadline of 70 percent

computerization.
2. A long term goal - To create a dependable core banking infrastructure and
build a nationwide network to connect different branches to the core
infrastructure.

Meeting the CVC deadline

In order to meet the CVC deadline the bank decided to deploy simple IT
infrastructure so that it could computerize 70 percent of its business within the
deadline. The IT team decided to implement an application, which could run on
standalone PCs across its nationwide branches. The application vendor would have
to provide nationwide support since the in-house IT team could not provide
support at all branches.

PNB chose a product from a company called Nelito. It was a DOS-based, 'Partial
Branch Automation' application. Standalone versions were chosen since there
weren't LANs in place, and deployment of LANs at branches would take so long
that the CVC deadline couldn't be met. The interface was simple in design, and
thus easy for the bank personnel to use.

Hardware and Training

The bank selected two hardware vendors and the application software was
embedded into the hardware to make them 'plug-and-play' capable. Nelito's
package was deployed at one branch at a time. And after each successful
implementation at a branch, it was replicated at a newer branch.
Internal training sessions for the bank personnel were conducted with the help of
14 training institutes. The source code of the product was tweaked to facilitate
deployment. The IT team was specially trained to re-architect the source code, and
make any modifications, improvements, value additions, and enhancements.
Deployment at the selected branches was over by December 2000.

The bank requested CVC for an extension of the deadline and was granted time till
March 2001. By March 2001, 70.60 percent of the bank's business was
computerized.

Long-term strategy

In the long-term, PNB wanted a technology that would consolidate all its business
resources and sustain the bank's future growth. It also wanted to create its own
network, which would play a vital role in its success. Three consultants were
appointed to review technology options for long-term adoption. The verdict of the
consultants was to deploy a centralized core banking architecture.

Core banking architecture

On 30 March 2001, the bank used the services of Infosys for the deployment of
Finnacle. A core team was selected, which would be the heart of the project.
Infosys trained 200-odd personnel from a core team over six months. The core
team modified and customized the package according to its specific needs.

It was then time to procure hardware. K.S. Bajwa, Deputy General Manager,
Information Technology Division, PNB, said, "It's a standard international practice
to procure hardware based on the type of software applications that an enterprise
has selected. This helps to match the specific computing needs required by the
software."

PNB purchased servers, security infrastructure, and storage equipment and decided
to house it in its own central data center in New Delhi. A lot of infrastructure from
Cisco has been used to build the data center.

In April 2002 the bank rolled-out Finnacle in seven branches as a pilot venture.
This was done because the bank had seven different application packages, and it
wanted to ensure smooth migration of the data into Finnacle. By mid May 2002, all
data from other software was successfully migrated into Finnacle.

Culture and technology issues

Issues were mostly cultural. Most staffers were used to working in a manual
environment, and some had worked in standalone environments. In the new
networked environment, personnel at the node/counter didn't actually 'see' the
transactions updating in the various account books.

This gave rise to a number of queries and suggestions from personnel. The bank
consulted IDRBT and RBI to verify the implementation success and it was
reported that the deployment was absolutely correct. Around six months later, the
personnel felt that the environment 'change' had done them good, and was used to
working on the systems.

"There were a few integration issues when migrating to Finnacle, but the in-house
IT team was able to resolve them all. The pilot for the initial seven branches was a
test-bed for us. The knowledge we gained from the pilot deployments helped us
overcome the future issues," explained Bajwa.

Systems

Before deploying the core banking architecture, PNB used servers which were NT-
based, from IBM, and from other vendors. The bank conducted benchmarking tests
for Finnacle on various server platforms. And it was satisfied with the performance
of Sun's hardware on Solaris. Sun's Fire servers, Solaris OS, and Oracle's RDBMS
are now in use.

Network design

Cisco has tied up with PNB to evolve the network design and implement a
nationwide network backbone to connect all its offices. Cisco will assist the bank
in understanding and implementing the various technologies associated with the
project. The converged network infrastructure will allow PNB to standardize the
applications and software needed to provide the banking services.

The network infrastructure will have a three-tier architecture. The network hub will
be in its data center. The various branches would be connected to the data center
using new-world routing and switching technologies.

Moving to Internet banking

PNB got a license from RBI to offer Internet banking services. Some of the RBI
preconditions were that the systems should be audited by an independent auditor,
and an independent and authentic agency must carry out penetration testing. The
bank has already had its systems audited by an external agency, and the penetration
testing process is still going on.

In the process, PNB has developed the skills of its own personnel to take charge of
security on their own at a later stage. The bank will also recruit technically trained
staff to provide the necessary knowledge pool. With the Internet banking launch,
the bank will also strengthen its security policy.

Storage systems

The bank has followed RBI's storage requirement guidelines. Provisions have been
made to store transaction data for around 10 years. In some cases, data is stored
permanently. Around 164 Sun enterprise class servers are used in a DAS
architecture. The total capacity is of multiple TBs.

The Sun hardware uses an in-built storage management tool. Bajwa feels that the
bank doesn't need a third-party storage management tool right now since the
database is not too large. However the bank is considering a storage management
application from Veritas.

IMPLEMENTATION AND BENEFITS OF

INFORMATION SYSTEMS IN PNB
RRBs play a key role in rural institutional financing and were formed with the
objective of rural credit delivery & upliftment of rural economy. RRBs faced many
challenges due to non-availability of skilled resources, lack of infrastructure, etc.
The business domain scope of RRBs is completely different than commercial
banks & mainly covers the priority sector advances. So taking all these
considerations into account under the guidelines of RBI, Punjab National Bank
had  implemented CBS in its 5000+ branches in 2008. Now the same
implementation methodology was also adopted to bring RRBs under the CBS fold.

To implement this, a lot of business and technical challenges were faced. First, as
mentioned above, the business scope of RRB is different and RRBs have specific
needs of subsidy, subvention and soft loan scheme. Second, the target customer are
mainly the local mass comprising of agriculturists, small businessmen having their
own needs and expectations. Third, adopting new technologies was a great
challenge for the RRB employees.

Best Automation Project

Company Scenario
Before Deployment
 Lack of infrastructure, non-availability of skilled
resources, etc  
 Customization, parameterization, etc was a big challenge

After Deployment  
 Customization, parameterization, innovative system
redesign is handled.  
 Seamless banking experience to the rural masses.

what was Deployed  

 Exisitng H/W, Data Centre setup, skilled and experience
manpower and other It resources was extended to RRBs.
 A total of 12 officials, 2 each from 6 RRBs were selected
and trained extensively by PNB officials and Infosys Ltd,  
utilizing the training infrastructure.

Punjab National Bank finally implemented CBS successfully in 6 RRBs in just 12

months before the schedule deadline. Improved customer service, better
housekeeping,desired growth, centralized generation of MIS reports, etc is now
achieved through the implementation of CBS in RRBs. Branches now have more
time so as to explore new business opportunities due to the automation of front-
office businesses. Anywhere Anytime Banking, Automated Teller Machines,
Internet banking solutions, etc are also provided to the banking customers. Post
CBS implementation, total gross profit has reached to Rs 228.97 Crore from Rs
175.04 Crore. The entire project was implemented using the internal resources of
Punjab National Bank including hardware, software, network and information
security infrastructure.

Ajay Misra, General Manager (CTO)

What has been the overall impact of this project?

RRBs have started reaping the benefits in terms of improved customer services,
improved housekeeping, centralized generation of MIS reports, etc, all with the
implementation of Core Banking Solution in RRBs. New business opportunities
are being explored at the branch level due to the automation of front-office
business. Not only that, due to the automation, the shortage of staff strength is
also complemented. Revenue leakage was curtailed and service charge also got
increased due to centralized execution of different charges.

The RRBs are now at par with any other commercial bank and are now marching
with prominence. Inter- SOL transactions have now become a reality. The
customer is now a customer of the bank rather than the customer of the branch.

One of the live examples is that, with the implementation of Earnest Money
Deposit Scheme of Haryana Urban Development Authority of the Haryana
Gramin Bank, they have fetched a deposit business of Rs1600 crores during the
month of December 2009- January 2010.

What according you sets this project apart from any other in its class?
What's the USP of this project?
While most of the peer banks are yet to bring their branches under the CBS
umbrella, Punjab National Bank has achieved it by bringing all the odd 1400
branches of its 6 sponsored RRBs which is unique in itself.

The total time required to complete the project was 24 months to cover 1400+
branches. However PNB achieved 100% CBS implementation in all 6 RRBs in
just 12 months and that too before the RBI schedule date which was September
2011.

Punjab National Bank implemented the entire project using the internal resources
extending its own H/W, S/W, information security infrastructure, etc. Not only
that, the Data Centre of RRBs is hosted by the existing datacentre of PNB and is
managed by the existing team.

The project CBS@ RRB meant for all the 6 Regional Rural Banks, is operating in
6 different states of North India and caters to the needs of rural masses. The
Branches of these RRBs are manned by the end users who are also the employees
of RRBs. On the contrary, Head Quarter is also using the Core Banking solution
for business monitoring & control and for generation of centralized MIS.
Coming to technical part of it, IT resources viz Network setup, Information
security setup and existing Data Centre setup was extended to RRBs. Apart from
this, skilled and experience manpower was also extended to RRBs. Only a few new
servers were procured while existing hardware resources were consolidated and re
utilized for RRBs which in overall helped in minimizing the project cost. 6
instances of database, 3-Tier setup having Web Server, Application Server and
Database server were also put in place.

In case of any kind of gaps, a detailed GAP analysis was performed in the existing
system and procedures being followed at RRBs. Utilizing the PNB training
infrastructure, a team of 12 officials, 2 each from 6 RRBs were selected and were
given extensive training by PNB officials and Infosys Ltd. Business Process
Definition exercise was undertaken with the RRB team followed by a strong
Business Process Re-engineering activity. This was implemented for
standardization of various processes and products across all the 6 RRBs.
Specialized business modules like Subsidy linked accounts, Subvention module etc
were also specially customized for RRBs. In future, PNB plans to further
customize it as per the banking practices. Not only this, MIS is also flexible
enough to incorporate any new customized reports without any issues. They also
plan to connect alternate delivery channels like ATMs, Kiosks, etc. A Service Desk
tool called  Service Desk Service Plus (SPSD), which is basically a call escalation
tool will also be implemented. Through this, any issues faced by branches can be
simply escalated to higher level of CBS desk. Moreover, an anti virus solution with
auto updates is also in the pipeline.

Punjab National Bank sets a Milestone for the Indian Banking Industry
Implements Finacle core banking solution from Infosys across 100% branches in
record time.
Sun Microsystems’ and Finacle core banking solution implementation on the
Oracle platform.
 

New Delhi, February 5, 2009 –  Punjab

National Bank (PNB), India’s second
largest public sector bank today
announced that  it has completed 100%
core banking implementation at  all its
4604 branches and extension counters
through the  Finacle Universal Banking
Solution from Infosys, on Sun
infrastructure and the Oracle Database
setting a significant milestone for
themselves and a new benchmark for the
Indian banking industry.

Completed in November 2008, 4 months

ahead of schedule, the bank implemented
industry-leading Finacle core banking
solution from Infosys across its operations
running a flexible, and scalable database
platform from Oracle and innovative and
cost-effective Sun SPARC enterprise
 servers from Sun Microsystems. With its
pan India presence, PNB offers a wide
variety of banking services through its
4604 branches including 249 extension
counters – the largest amongst
Nationalized Banks. With an increasingly
dynamic business and regulatory
environment, PNB sought to not only
achieve automation, but also centralize
operations, standardize branch processes,
achieve high scalability for future business
growth, provide flexibility of creating
innovative banking products to its lines of
business, and at the same time, reduce
overall costs.

 
The visionary zeal and the futuristic view of the Bank’s top management in the
year 2000-2001 incubated the idea of introduction of a Centralised Banking
solution. The bold
and innovative thought culminated into the CBS architecture with Finacle
application on Oracle Database and Sun hardware platform with Solaris Operating
System.
 
In 2001-2002, PNB embarked upon a transformation journey unparalleled in the
country in terms of scale and technology. The bank became the first public sector
bank in
India to opt for a new generation core banking platform – Finacle from Infosys.
Since then, Finacle has enabled the bank to consolidate and centralize its
operations,
improving branch efficiency and productivity per employee. Consolidation has
also resulted in reduction of revenue leakage and cost, while increasing ease of
technical
support and maintenance at branches.
 
With Finacle’s agile and future proof technology, the bank today has over 22,500
concurrent users. The solution’s scalability has also enabled the bank’s scalability
to be
the best in the country with the number of peak transactions at 3.5 million.
 
Finacle core banking platform also provides the bank with exceptional agility for
product innovation and improved flexibility of operations. With seamless
integration of
delivery channels such as ATM and internet banking solutions, PNB is able to
provide 24X7 services to customers at a reduced transaction cost.
 
Sun SPARC enterprise M series and energy efficient Chip Multi-Threading
(CMT) systems running the Solaris Operating System delivered higher
performance and scalability, enabling PNB’s architecture to scale seamlessly from
catering to 500 branches to more than 4600 branches across the nation. Periodic
consolidation of servers and storage by Sun Professional Services also delivered
important benefits – optimizing compute and storage utilization, reducing power,
cooling and space costs significantly over a period of time.
 
Sun technologies also ensured  continuous availability of the banking platform
with the Disaster Recovery Site established by the bank and as part of test drills,
the Bank has successfully operated out of its alternative datacentre (DRS).
 
PNB’s choice of the Oracle Database has provided the bank’s IT infrastructure
with robustness, management features, security and scalability as well as
performance requirements to service 3.5 million transactions and 22500 concurrent
users – a significant achievement in the Indian banking industry. In addition, the
Oracle Database will help PNB take control of its enterprise information, gain
better business insight, and quickly and confidently adapt to an increasingly
changing competitive environment. 
 
With secure, highly available and scalable grids of low-cost servers and storage,
Oracle customers can tackle the most demanding transaction processing, data
warehousing, business intelligence and content management applications. 
 
The 100% implementation of Finacle Core Banking Solution shall enable PNB to
further reduce operational costs and revenue leakage while improving productivity
of
branches, introduction of new and innovative products and visibility of business.
The anywhere anytime banking facility will enable the bank to offer products for
every
segment of the customer.
 
On the landmark achievement of 100% CBS, Dr. K. C Chakrabarty - Chairman
and Managing Director of Punjab National Bank said “The challenges of the
financial
sector can be met with the total connectivity and the centralisation of the banking
operations. It not only ensures standardisation of products, but also enables quick
launch
of the new and innovative financial products ensuring sufficient lead time to
market it. Vast majority of our population are still denied easy access to banking
and the
technology driven Financial inclusion initiative will bridge the gap. The core
banking solution offers seamless platform for integrating various such initiatives
and also reduces
the cost of transaction, thereby offering financial products at an affordable cost.
The achievement of 100% CBS is the beginning of our efforts in this direction. The
contribution of our technology partners enabled us to achieve the milestone ahead
of the time schedule.”
 
Mr. Haragopal M, Head - Finacle, Infosys Technologies Ltd., said on the
occasion, “I congratulate Punjab National Bank on setting this unique standard in
the Indian banking industry. Our long-standing and progressive partnership also
highlights Finacle’s leadership in large scale banking transformation, the solution’s
future proof technology and powerful capabilities. India is a strategic market for
Finacle and we look forward to closely collaborating with Punjab National Bank
for their future growth plans.”
 
Commenting on this achievement, Mr. T. Srinivasan, Vice President,
Technology Sales, Oracle India said, “It gives me immense pleasure to see our
relationship with PNB, of almost a decade, reach this stage of achievement. We
have worked closely with the bank to provide an IT infrastructure through Oracle
Database that will enable the bank to support its customers 24x7.” He added, “In
addition, our database is easy to deploy and manage and will provide PNB with
high availability of data.
 
Highlighting the need for banks to transform business functions by leveraging agile
next generation technologies, Mr. Anil Valluri, Vice President and Managing
Director- India GEM, Sun Microsystems said, “We congratulate PNB on
completion of this milestone and we are privileged to be part of this project. This
represents a giant stride for the Indian banking industry in its road to adoption of
technology.  In order to meet rapidly changing business demands, banks need
enterprise-wide tools that can eliminate obstacles, meet the challenge of new
markets, and ultimately lead to a healthy competitive position. With over two
decades of technology experience, Sun Microsystems has been a leading provider
of mission critical technologies and services to the Banking industry and our
customers are marquee names in the Indian banking industry. The deployment of
Sun’s flexible and efficient infrastructure has helped PNB in the implementation of
the core banking solution at a rapid pace.”

RECOMMENDATIONS FOR FURTHER

IMPROVEMENTS